Giving Thanks: How Managers Should Respond to Compliments in Positive Word of Mouth

Abstract

Consumers expect managers to respond to positive reviews, but it is unclear whether these responses are beneficial. This research finds that managerial responses to positive reviews can positively impact consumers when managers follow conversational norms for responding to compliments. It proposes that managers downplay the compliments that their firms receive via positive reviews (e.g., “Dinner was fantastic!”) and examines two norms-based strategies for doing so: (1) shifting the content of the compliment (e.g., “We’re glad dinner was good.”) and (2) shifting the recipient of the compliment (e.g., “our suppliers helped.”). First, an experiment and Google Local data show a disconnect between how consumers think managers should respond and how managers currently respond. Second, six experiments test the proposed response strategies. Compared with managers who do not respond to positive reviews and managers who write responses currently recommended by industry or academics, managers who downplay compliments improve readers’ evaluations of the firm and engagement on the platform. Downplaying the compliment improves consumer outcomes by conveying the manager's humility, which is normative. Downplaying is most effective when the manager reduces credit to the firm, appreciates someone else involved (e.g., supplier, reviewer), and uses moderately positive descriptors (e.g., “good” rather than “fantastic”).